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What going digital really means to IT
SpeakersRoss Mason, Founder & VP of Product Strategy, MuleSoftBill Briggs, Chief Technology Officer, Deloitte Consulting LLP
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Housekeeping
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Questions can be submitted at any time throughout the webinar – you can use the “Questions” tab or tweet us. Tweet to @DeloitteDIGI_US or @MuleSoft and use the hashtag #DeloitteMuleSoft.
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Today’s agenda
1. Our customers’ need for digital transformation
2. Global survey data on how CIOs and ITDMs are currently managing digital transformation
3. Digital defined
4. Understanding the forces and challenges present in the digital revolution
5. How businesses are overcoming these challenges
6. Q and A
Ross MasonFounder & VP Product
Strategy, MuleSoft
Bill BriggsChief Technology Officer, Deloitte Consulting LLP
Our speakers
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Meet one of our customers
6,000applications
10,000interfaces
500IT projects a year
Each project reinvents the wheel
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Biggest challenge: IT cannot go fast enough
Dem
ands o
n I
T
Time
Today
IT delivery capacity
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IT’s absolute imperative to change
Dem
ands o
n I
T
Time
Today
IT delivery capacity
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What are ITDMs doing about this?
8
MuleSoft surveyed 802 global IT decision makers about their progress towards their digital transformation goals.
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Everyone is doing digital transformation
9
96 percent of ITDMs say they are undertaking or will soon undertake digital transformation initiatives.
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But they are missing the “transformation” in digital transformation
10
82% of ITDMs associate digital transformation with
“going paperless.”
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IT is on the hook for digital transformation, but…
11
65% A majority of ITDMs (65%) believe IT
has the central role to play in digital transformation.
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Very few organizations have mastered it
12
But only 18% think they can actually get it
done.
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Failing to meet goals will negatively impact the business
13
Two-thirds of ITDMs say that if digital transformation isn’t completed, it will have a negative impact on business revenue within 6 months.
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The single biggest challenge to digital transformation
ITDMs say the single biggest obstacle to achieving their digital transformation goals is misalignment between IT and the rest of
the business.
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While the business is expecting faster delivery…
15
57% said the expected time to complete IT
projects for the business was six months or less.
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IT is spending its time keeping the lights on
16
More than half of ITDMs say maintaining legacy systems is a “very important priority.”
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The focus is not on transformative initiatives
17
Most ITDMs are spending their time incrementally improving business processes rather than delivering
innovative experiences.
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Top Takeaways
18
IT teams misunderstand digital transformation
IT and the business are misaligned on digital transformation goals
The business wants IT to deliver faster, but obstacles are holding IT teams back
What Going Digital Means to IT andthe Bottom Line
Bill BriggsChief Technology Officer Deloitte Consulting LLP@wdbthree
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DIGITAL defined
Business leaders are grappling with
unprecedented change – growing
connectivity, competition and consumer
power. Disrupt others before you are
disrupted means new products,
organizations, business models, and
ecosystems
Growing competition and consumer
power has eroded traditional product-
based advantages, forcing companies to
shift to a new battlefield: Customer
Experience. This requires integrating the
entire business to demonstrate value at
each and every customer touch-point
Digital acceleration focusing all efforts on
breaking new ground or quickly expanding
into new space created by a new category.
An exceptional front-end strategy must be
supported by an exceptional back office,
requiring new expertise, processes and
systems, and potentially a new operating
model
Digital at the CoreIntegrated Front & Back Office
Digital ExperiencesEngaged Customers & Employees
Digital TransformationBusiness Reimagined
SHIFTINGMARKET
Extended Ecosystems Exploitation
Competitor “First-Mover” Advantage
Customer ExperienceExpectations
Globalization
CHANGINGTECHNOLOGY
Information Technology: Digital, Cloud, Analytics,
Core Modernization, IT Delivery Model Transformation
Science and Exponentials: Artificial Intelligence,
Robotics, Bots, Synthetic Biology, Additive
Manufacturing, Nanotech, Quantum Computing
Cyber Attacks/ Security Threats
Macro-economic Tides
Risk & Regulatory Requirements
RISKS ®ULATIONS
YOU INC.THE MARKETPLACE
THE WORLD
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IT transformation
Procurement and sourcing
Finance management
PROCESS
Vendor and contractmanagement
Solution shaping
Stakeholder communications and expectation management
DevOps
Leadership
Talent
Mindset/culture
ORGANIZATION
Organization structure
Incentives
Master data integration
Building to run
Design as a discipline
ARCHITECTURE
Micro-services
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Five forces
ECOSYSTEMS
Digital transformation requiring dynamic configuration of products, offerings, and services across organizational boundaries
DESIGN
Shift from vertical and process focus to individual outcomes and capabilities
API ECONOMY
Business services requiring modernizing underlying interfaces and next-gen orchestration layer
RISK
Security, privacy, regulatory, compliance, safety, quality, ethics, and morality
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The challenges facing DIGITAL today are ubiquitous
*DU Press 2015 CIO Survey
*DU Press 2015 CIO Survey
http://www.forbes.com/sites/gilpress/2015/11/10/transform-or-die-idcs-top-technology-predictions-for-2016/#743852ea7cec *DU Press 2015 CIO Survey
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Overcoming digital challenges
Businesses are under increasing pressure to deliver more—better, faster, and cheaper.
The role of digital should evolve from providing customer support to enabling
customer experience and business growth.
• Siloed organizational structures
• Underinvestment in IT modernization
• Complicated legacy systems
• Business and IT agility
• Data – master data, content, and context
• IT talent gap
COMMON CHALLENGES
DIGITAL ORGANIZATION
OF THE FUTURE
Responsive & Intuitive
Infrastructure
Business Empowerment
Champion
Aggressive Capability
Enhancement
Value Delivery in Days &
Weeks
Amplified Solution Delivery
Enabler Of New Digital Disruptions
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DES
IG
N
BU
ILD
RUN
IT OPERATING MODEL
DATA
APPLICATIONS
INFRASTRUCTURE
STRATEGY
BUSINESS
CASE
BENCH-
MARK
ROADMAP
ADMINNOVATION
FOUNDRY
REPLATFORM
REMEDIATE
NEXT-GEN
PLATFORMS
USER
EXPERIENCE
ARCHITECTURE
INTEGRATION
IT OPERATING MODEL• IT org design/strategy• DevOps/Agile transformation• Agile transformation
DATA• Data management strategy/implementation • Core analytics transformation• Analytics COE
APPLICATIONS• App/Code Refactoring• SAP S/4HANA• Oracle ERP Cloud• Hybrid Strategy
INFRASTRUCTURE • Cloud strategy/migration• Data center modernization• Infrastructure ops modernization
DIG
ITA
LEX
PER
IEN
CE
TR
AN
SFO
RM
ATIO
N
O&M
IT modernization stack
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Approaches to core modernization
Replatform Remediate Revitalize Replace Retrench
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Introduce differentiation that turns IT into an enabler, rather than simply a cost center. Getting the right governance and process in place is key.
Business
Product
Product enabling technology
Matu
rit
y
Time
Traditional IT
Business
Product
Two-speed IT
Business
Product
Right-Speed IT
Communication and collaboration models change as the IT operating model evolves.
Transforming your IT org and delivery speed
IT delivery now needs to
occur at varying speeds,
with very different change
cycles: what we define as
a Right-Speed operating
environment
Foundational IT
Digital IT
EnterpriseIT
Right-Speed Tech Functions
INTERACTIONS
CHANGE CYCLES & PROCESS
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2 Create agileexecution
Learn to develop and try
ideas in short iterative
sprints with empowered
teams. Treat digital
initiatives like R&D.
1 Think exponentially
Set bold goals to achieve
factors of 10X impact.
Defeat incrementalism
within your organization.
Allow failure.
3 Shift theculture
Acquire and hire edge
teams to bring design
thinking, mobile, digital,
creative, and disruptive
ideas.
4 Protect the people
Insulate digital teams from
layers of bureaucracy,
policies, or other
compromises not found in
a start-up culture.
6 Find new ideas
Look for new ideas to solve
old industry issues and
customer problems. Don’t
be limited by the status
quo.
5 Put the customer first
Focus on the customer
experience. Make customer
value and delighting the
customer the #1 priority.
7 Use design thinking
Design is the new
differentiator in digital.
Diverse teams led by design
thinking will create an
amazing impact.
8 Focus on value
Don’t get distracted by all
the digital shiny objects.
Focus on revenue, key
metrics, and follow the
money.
Shift the mindset: eight great traits of a digital business
What we are learning fromsome leading enterprises
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IT’s absolute imperative to change
Dem
ands o
n I
T
Time
Today
IT delivery capacity
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Enabling IT to support business transformation
Dem
ands o
n I
T
Time
Today
IT delivery capacity
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Define some organizational paradigms
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Define some organizational paradigms
reuse of access
reuse of services
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build connections as needed
reuse of services
reuse of access
Define some organizational paradigms
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build connections as needed
Define simple abstractions
reuse of services
reuse of access
Define some organizational paradigms
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build connections as needed
Define simple abstractions
reuse of services
reuse of access
complexity should go down, not up
Define some organizational paradigms
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The application network
A seamless network of applications that…
… is organized around focused,well-defined units of value
… is recomposable
… emerges bottoms-upvia self-service
… where visibility, security andgovern-ability are built in
… bends, not breaks
… where each node adds value to the whole network
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Enabling a new IT operating model
Production
Agile Development, SDLC, DevOps, Microservices, APIs
publish reusable assets
Central IT or LoB IT
Consumption
Community enablement, asset discovery, self-service
feedback and
metrics
LoB IT, SIs, App Dev
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Every role in the business transforms
IT delivering projects → directing projects, ensure quality, reusability, security
architects architecting every project→ shaping patterns across projects
line of business
requesting projects → self-serving and moving fast to deliver
systems experts
needed for every project → make core data available once, self-service
Q and A
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A partnership enabling truly transformative outcomes
42
Connecting business to possibility.
Contact us to learn more >
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About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a detailed description of DTTL and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
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Copyright © 2016 Deloitte Development LLC. All rights reserved.